Strategy can be described as a have and have nots in the corporate world. Large corporate enterprises can use one of the “Big 5” consulting firms that tap into their industry experts. The consultants can perform deep research and analysis of where the company is positioned, where the opportunities are, and inside information about their competitor’s strategy. Taking this information, they can tell the company where to go and how to invest their resources. Unfortunately, the consulting processes have little variation and all produce trends that have little variation. This results in the advice that a company receives do not vary much from the same advice their competitors get. This leads to a marketplace competitive stalemate.
Smaller organizations run into different strategy issues that center around resources. In many instances, they struggle to keep up with day-to-day operations and do not have the capacity to go through a formal strategy process. Many of these firms also cannot afford the astronomical price of “Big 5” consulting or even boutique consulting firms. When these businesses do develop a strategy, they tend to be pieced together on gut feel and intuition instead of analysis which leads to a half-baked strategy.
There are numerous problems that reside in the strategy process with one of the most common issues being that the strategy is nothing more than an annual financial plan. The main issue being that strategies are never bound to a routine cycle and the outcomes of these events are neither strategic or innovative. The opposite issue is that strategic plans are aspirational and are not actively worked or funded. This is the curse of having too many great ideas and too many initiatives which lead to the organization to stay in its current routine (Hollister, 2018). Lastly, the third main issue with strategies is that they create a rigid and inflexible plan that is invested heavily into. Later when market conditions change, the organization is unable to adjust to match the dynamic nature of the market.
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